There are about 200 crypto coins in the crypto world, with a wide range of coins and projects. Some crypto coins are fake and only exist to steal your money, however there are many legitimate coins that have appropriate future planning and a decent project that leads the coins to success. It depends on your research about the coin to invest properly and to build your wealth.
THE IMPACT OF MAXIMUM SUPPLY ON FUTURE PRICES
These coins have unique qualities and properties related to the project. The supply and demand for that coin is one of the most important factors in its growth. Every coin is predicated on supply, with some being limited and others not defined. These coins with no maximum supply have less demand and the price of the coin will not increase by the passage of time.
The maximum supply of a crypto coin is extremely important for the coin's future growth. If coin "A" has a maximum supply of 4 million, it signifies that after that quantity is reached, the coin will no longer be minted. The demand for the coin "A" will rise as a result, and the price will rise as well. However, if demand is infinite, the price of that coin will fall over time.
It is very obvious that the higher the demand, the higher the price, and the lower the demand, the lower the price. The overall supply of one coin determines demand and supply. Bitcoin is the finest crypto coin in the crypto business since it has a limited quantity and will not be printed once it reaches the limit. That is why, every three years, the price of Bitcoin is halved, further shrink the quantity of Bitcoin.
This will help to increase the coin's price, and in the case of a bear market, the price of #Bitcoin will not fall below the previous year's lower price, but will remain above that price due to the limited coin supply. In this scenario the coin's demand has increased, and individuals will look to buy it, but there is limited max supply, which will help drive up the price.
Let's discuss about the hive coin, its supply, and its burning mechanism. This hive is quite perplexing to me, which is why I suggested this topic for discussion. We all know that hive coin is a newly launched crypto coin that had a greater price of $3.5 two years ago. However, with the onset of the bear market, the price continued to fall until it reached $0.36.
THE UNDEFINED MAX SUPPLY OF #HIVE COIN: IMPLICATIONS ON DEMAND AND PRICE
This coin is ranked #156, with a market cap of $179,401,322 and a circulation supply of 487,413,802. This coin's maximum supply is not specified, implying that it is infinite. There is no printing limit for this coin, and the coin quantity will rise with time. What is troubling is that if there is no limit supply, demand will be reduced as well which will lower the price of the coin.
When there is less demand for the coin, the price will fall over time. Every year, the price of the hive coin will fall in price since there will be more coins available to acquire at the lowest price. #HIVE will continue to print coin from the reward pool as delegated proof of stake. Thousands of users are working on the #hive platform, and thousands of coins are printed every day.
This worries me, however I still don't know whether or not there is a burning mechanism for this coin as well. I'm looking for advice from my seniors, particularly @taskmaster4450, @bitcoinflood, @chorock, @felixxx, and other friends. Will #HBD help to reduce the number of hive over time, or is there another burning process to keep the number of hive limited?
According to what I understand about this coin, the maximum supply for hive is not defined, which implies it can be printed indefinitely. Also, I may have misunderstanding something, in which case I would appreciate correction. Please share your thoughts and opinions on this in the comments section so that I can clear my mind.
This is my attempt to inform you about the hive coin maximal supply as well as the pros and cons of the future price. I hope you found this post useful and educational. If you enjoyed the post, please leave a remark so that the next one will be even better. Thank you for sticking with me all the way to the end.
IMAGES AND GIF TAKEN FROM CANVA, EDITED IN CANVA
HIVE STATS ARE TAKEN FROM BINANCE
REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.